Key Takeaways:
- Binance found itself in another scandal after rumors of the exchange having a shell office in the UK surfaced online.
- The exchange declined any association with the address
NEW DELHI (CoinChapter.com) — Binance found itself the target of rumors surrounding a suspicious address in the UK. Social media was abuzz with speculations that the exchange’s offices in the country were a shell.
Users on Twitter and Reddit (r/buttcoin) shared images of a small garage building on the outskirts of Mildenhall in Suffolk County, England. Several users started to cry wolf. However, one user (@intel_jakal) highlighted that Binance moved over $120 million of users’ cash on zero revenue.
The user also highlighted that several news sites reported Binance pulling stakes from the UK due to “regulatory woes.“
Furthermore, intel_jakal noted that the exchange’s filings contradicted the Financial Conducts Authority’s (FCA) statement, which noted that Zhao’s crypto exchange offered a “range of products and services” to UK citizens.
However, the general sentiment over social media was that the world’s largest exchange was likely operating in the UK using a shell address. The speculation resulted in several users claiming Binance was “scamming” users or was a “fraud.“
In detail, tech firms often use shell addresses for various purposes, ranging from privacy to tax haven benefits. However, malicious actors also use shell companies to launder funds.
Registered offices aren’t always a scam, but they aren’t usually a great sign either. Some people want a prestigious London address for their company, others […] register with their accountants premises or something similar. That said, yes this whole setup looks dodgy as f**k.
A Reddit user said
Interestingly, the crypto exchange shares its UK ‘office’ with 121 other firms, with over 2,250 firms. Talk about inclusion and decentralization!
Binance Claims No Allegiance With The Firm At The Address
The exchange’s ongoing legal battle with the US Securities and Exchange Commission centers around the regulator’s claims that Binance and its CEO Changpeng Zhao have been defrauding customers. Therefore rumors of the exchange operating alleged shell companies might harm its public image.
Binance took no time to denounce any allegiance with the firm registered at the address.
The exchange stated that the company at the address was a scam with no affiliations to “not affiliated with Binance in any way.“
Additionally, Binance stated that it had issued a cease & desist order against the perpetrators. Furthermore, the exchange took a dig at the news coverage that the rumors attracted, advising the media to not “let the facts get in the way of a good story!“
Furthermore, the news comes at a time when CEO Zhao issued a cease-and-desist notice against a firm, Binance Nigeria Limited, claiming it was also a scam.
At the moment, Binance’s UK address is similar to the cat in Schrödinger’s thought experiment, exists, and does not, at the same time.
